Indian Markets expected to consolidate after recent recovery - ZENMoney

After falling from a high of 6229 level in May, the market fell to a low of 5566 during the week, before witnessing a recovery. While a close above 5863 level would indicate that the recovery would continue, a close below 5729 would indicate that the market could re-enter a correction mode. The market recovery is expected to face strong resistance around the 5936-5974 range.

The Indian markets are likely to keenly track the policy announcements from the government for further market direction in the near term. On the domestic front, the rupee recovered from a record low last week but further move will depend on global factors along with the domestic market movement. Further, any positive move from the government on the reform process can lead to further recovery.

The market would be eyeing the auto sales, cement dispatch and telecom figures that would be released during the week for cues. Stock specific action is likely to be witnessed based on those figures. The monthly PMI data to be released during the week would also dictate the market movement in the near term.

The market will also be tracking the FII flows for direction. FII flow which was negative for almost two weeks is expected to witness some reversal in the coming week on improving global sentiment and if there is any sustained recovery in the Rupee.

While 5777 and 5729 and 5683 are important support levels for the Nifty, 5863, 5921 and 5973 are important resistance levels for the Nifty.

The 19164, 19069 and 18765 are the immediate support levels for the Sensex 19586, 19711 and 19860 are the immediate resistance levels for the Sensex. The market is expected to consolidate after the recent recovery.

Source : Equity Bulls

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